A man bought a house for Rs. 10 lakhs and rents it. He keeps 12½% of each month’s rent aside for repairs, pay Rs. 3320 as annual taxes and realizes 10% on his investment thereafter. The monthly rent of the house is?
Explanation:
Let the monthly rent of property be r.
Investment on property = 10 lakhs
Money on repairs (Annually) = 12.5/100 × r × 12
Annual taxes = Rs. 3320
Thus, expenditure recovered from rent, annually = 12 × 12.5r/100 + 3320 = 1.5r + 3320
Savings from rent (Annually) = 10/100 × 10,00,000 = 1,00,000
Annual income - Annual Expenditure = Annual Savings
Thus, 12r – (1.5r + 3320) = 1,00,000
or, 10.5r = 1,03,320
or, r = Rs. 9840
Hence, option (d).
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